HighLife Corporation has the following information: Average demand = 30 units per day
Average lead time = 40 days
Item unit cost = $45 for orders of less than 400 units
Item unit cost = $40 for orders of 400 units or more
Ordering cost = $50
Inventory carrying cost = 15 percent
The business year is 300 days.
Standard deviation of demand during lead time = 90
Desired service level = 95 percent
What is the EOQ if HighLife pays $45/unit? Due to possible differences in rounding,choose the closest answer.
A) 287
B) 300
C) 365
D) 398
Correct Answer:
Verified
Q29: _ inventory is the costliest form of
Q30: A company has average demand of 30
Q31: When small changes generated by a customer
Q32: A company has average demand of 30
Q33: A company recently lowered its service performance
Q35: Johnson Manufacturing has decided to consolidate its
Q36: Bill's Food Emporium uses the periodic system
Q37: HighLife Corporation has the following information: Average
Q38: What might a company do to reduce
Q39: You have a one-time opportunity to buy
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents